Esperion Shares Rally After Patent Litigation Settlement For Cholesterol Drugs

The company said that Dr. Reddy’s Laboratories has agreed not to market a generic version of either Nexletol or Nexlizet in the U.S. before April 19, 2040.
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Anan Ashraf·Stocktwits
Updated Oct 03, 2025   |   9:00 AM GMT-04
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Esperion (ESPR) on Friday said that it has entered into a settlement agreement with Dr. Reddy’s Laboratories and its affiliate under which the latter has agreed not to market a generic version of either Nexletol or Nexlizet in the United States before April 19, 2040.

The agreement resolves the patent litigation brought by Esperion against Dr. Reddy’s Laboratories after it submitted an Abbreviated New Drug Application seeking approval to market a generic version of each of Nexletol and Nexlizet.

The two drugs are used to reduce low-density lipoprotein (LDL) or "bad" cholesterol in adults with high blood cholesterol levels, known as primary hyperlipidemia. Shares of Esperion traded 8% higher in the pre-market session at the time of writing.

On Stocktwits, retail sentiment around ESPR stock stayed within ‘neutral’ territory over the past 24 hours, while message volume remained at ‘normal’ levels.

Esperion reached a settlement agreement with Micro Labs USA and its affiliate; Hetero USA, and its affiliates; and Accord Healthcare earlier this year with respect to their generic versions of Nexletol.

The bempedoic acid portion of the two drugs is claimed in an Esperion patent scheduled to expire in December 2030, the company said. With the settlement with Dr. Reddy’s, there are no remaining challenges regarding the validity or infringement of the said patent in the pending patent litigation, it added.

The company also stated that there is no assurance that the ongoing patent litigation against the remaining defendants, including Alkem Laboratories, will allow a generic version of the cholesterol drugs to be marketed in the U.S. before April 19, 2040.

ESPR stock is up by 32% this year and by approximately 48% over the past 12 months. 

Read also: Ovid Therapeutics Stock Rallied 18% Pre-Market – Here’s Why

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